Ethereum aggressively fights to step above $3,000 a cloud of doubt reigns at its ability to overcome congestion at $3,200.
A dwindling on-chain activity is a bearish sign for Ethereum, implying that bulls may not have the power to sustain an uptrend.
Ethereum bulls have been pushing for action above $3,000, but all attempts made toward $3,200 have resulted in futility. The flagship smart contracts cryptocurrency token had retreated to a September low of $2,650 more than a week, but collectively, little progress has been made since then.
Meanwhile, some selected altcoins seem to be ignoring the mundane price action across the crypto market. Binance Coin leads the recovery in the top ten with an 11.6% gain over the last 24 hours, with Avalanche coming second with a 6.1% upswing. The market is mixed red and green across the board, whereby bulls will likely emerge intraday winners throughout the trading on Thursday.
Ethereum Could Fallback Before Heading For A Significant Swing To $4,000
The gigantic smart contract token is experiencing a lot of trouble gaining traction above $3,000. Although the short-term technical outlook appears ripe for a breakout above this level, it is not guaranteed that Ether will make it past $3,200 and sustain an uptrend at least to the supply zone in red around $3,600.
According to the 12-hour chart, Ethereum is locked within the confines of a descending parallel channel. Its key downside is supported by the 200 Simple Moving Average (SMA), which rests in the demand zone highlighted in green. The channels’ middle boundary also contributes to securing this anchor zone.
A break above the upper boundary would boost Ether above the $3,000, but the token needs to push past $3,200 to affirm the uptrend to $3,600. However, the 50 SMA has recently crossed below the 100 SMA; an index considered bearish despite not being as strong as a death cross pattern. The last time this technical outlook occurred was on June 4, and Ether subsequently dropped by 41%. Hence the magnitude of its effect on the price cannot be overemphasized.
ETH/USD 12-Hour Chart
ETH/USD price chart by Tradingview
Meanwhile, Ethereum’s on-chain activity has been dwindling over the last 30 days, and this is taking a toll on the price performance. Data by Santiment shows the network growth at roughly 80,000 new addresses per day, down from a 30-day high of nearly 110,000.
Ethereum Network Growth
Ethereum Network Growth Model By Santiment
Suppose this metric continues to drop in the coming days, investors should anticipate a difficult recovery phase and perhaps the possibility of Ether sinking to $2,400, where it is likely to be attractive to more bulls.
Ethereum Key Intraday Levels
Trend: Short-term bullish bias
Support: The 200 SMA and $2,650
Resistance: $3,200 and $3,600
The post Ethereum Price Remains Drab Under $3,000 Risking Another Major Dip Accentuated By Waning On-Chain Metrics appeared first on Coingape.